Connecticut businesses can be eligible for tax credits of $500 per month for each new full‐time job created. If the new employee is receiving vocational rehabilitative services from the Bureau of Rehabilitative Services, receiving unemployment benefits, or is a veteran employee who, at the time of hiring by the taxpayer, is a member of, was honorably discharged from or released under honorable conditions from active service in the armed forces, then the tax credit is increased to $900 per month.
These credits will be available for each new employee hired between January 1, 2012 and prior to January 1, 2014 for period of three years. The credit may be applied against the following taxes:
- Insurance premiums tax under chapter 207 of the general statues
- Corporation business tax under chapter 208 of the general statues
- Utilities company tax under chapter 212 of the general statues
- Income tax under chapter 229 of the general statues
Please see the process outlined below to apply for this credit.
Note: An application must be completed and submitted to DECD before hiring new employees.
There are three thresholds to qualify for the credits:
- Businesses with under 50 employees must hire at least one new full-time employee
- Businesses with 50-100 employees must hire at least five new employees
- Businesses with over 100 employees must hire at least 10 new full-time employees
Application Process/Next Steps:
- Eligibility Application is submitted by the applicant
- Eligibility Review is then conducted by DECD
- Tax Credit Eligibility Letter is submitted to the applicant
- DECD will provide the Applicant with the DECD Reporting Form JET-1 after the end of the Applicant’s fiscal year
- Certificate of Eligibility is issued for tax credits earned based upon a net increase in jobs above the Applicant’s baseline employment
To apply please complete and submit the JET Application